(CNN) -- The host of CBS' "Late Show" may be changing, but the location is staying the same.
CBS and New York Gov. Andrew Cuomo announced Wednesday that "Late Show With Stephen Colbert" will stay in New York City, where it's been for 21 years with David Letterman.
"I am pleased to announce that the 'Late Show' will stay in New York, where it belongs," Cuomo said in a statement. "As David Letterman passes the baton to Stephen Colbert, I look forward to watching 'The Late Show' from the historic Ed Sullivan Theater for years to come."
CBS President and CEO Leslie Moonves was also upbeat.
"We're thrilled to continue broadcasting CBS's 'Late Show' from New York and call the Ed Sullivan Theater its home," Moonves said in a statement. "We're excited to be here in late night for many years to come."
As part of the deal, CBS will be eligible to receive at least $11 million in tax credits. Another $5 million grant from Empire State Development, New York State's chief economic development agency, will also be made available to offset renovations at the Ed Sullivan Theater, the statement said.
Letterman announced his retirement on April 3. Colbert was selected as the "Late Show's" new host a week later.
The Ed Sullivan Theater, where famed variety host Ed Sullivan hosted his CBS show for many years, has been Letterman's home since he came to the network in 1993.
Letterman has had great fun with his New York environs -- first on NBC's "Late Night," where his sketches made the rounds of the Big Apple, and then on the "Late Show," where he made stars of local characters and hosted concerts on the theater marquee.
Colbert will take over the show some time in 2015. He'll be leaving Comedy Central's "The Colbert Report" at the end of 2014, which will become a new show, "The Minority Report With Larry Wilmore," in January.